Tuesday, June 08, 2010

The verdict is in

It's a source of endless mystery that right-wing governments manage to carry a "fiscally responsible" brand even when their consistent track record is one of unsustainable tax slashing leading to mountains of debt. But Murray Mandryk points out that the Wall government is on the verge of having its popular image reflect its public mismanagement, with particular thanks to a rare opportunity to directly test the Sask Party's spin:
(W)hat might be more troubling for the Saskatchewan Party government's reputation as fiscal managers came as a result of blasts from a couple sources with expertise and objectivity on financial matters.
...
(M)ore damning, however, was what (Acting Provincial Auditor Brian) Atkinson had to say about "inappropriate accounting policies" that have resulted in the government reporting "net debt and annual surplus inaccurately." Had the government properly accounted for all transactions, the government would have recorded a net debt of $8.07 billion instead of $3.85 billion and a surplus of $1.62 billion instead of $2.39 billion in 2008-09, the acting auditor said.

Atkinson's criticism come at a time when both the Sask. Party and the NDP are running advertisements with diametrically opposing claims on the government's debt record. If one views the auditor as the arbiter, his recent report certainly comes down in the NDP's favour.

In fact, the auditor's report pretty much buttresses the NDP's complaints about massive deception in that Sask. Party flyer that landed on your doorstep recently, in which it claims provincial debt under the NDP was $6.8 billion, but is now only $4.1 billion under the Sask. Party government. The debt graph Wall strategists drew up in their propaganda was (at best) misleading or (at worst) downright deceitful, as it tries to pass off general revenue fund debt as being the same thing as overall provincial debt (which is again on the rise).

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